18 Ways To Save Money On Your Car Insurance

Finding the best car insurance policy at the best price can be a time-consuming and arduous task. Not only do you have to consider complex insurance pricing structures but also state-mandated regulations. This results in many consumers paying far more for their insurance than they should be.

Saving Money On Auto Insurance

Being a licensed insurance agent puts me in the unique position to provide a few tips and tricks to consumers that they can use to lower their car insurance premium. Using the verifiable information provided by The Zebra’s State of Auto Insurance in an attempt to make the auto insurance industry more transparent, here are 18 tips that you can use to save on your car insurance.

1. Don’t Let It Lapse

Insurance companies provide discounts for continuous coverage and rates can drop as much as 7.7% after just the first year of cover. This savings increases the higher your liability coverage on your policy is. This means that the greater your limit for liability coverage, the greater your discount and therefore savings will be.

2. Bundle It

Insurance providers often offer greater value for package deals or taking out all your insurance under one umbrella. For instance, bundling your homeowner’s insurance with your auto insurance can save you on average $110 per year and adding it to your renter’s policy, $72 annually.

3. Research It

Take some time to learn more about state requirements and regulations regarding minimum cover and liability insurance and how this affects your auto insurance policy.

4. Plan Ahead

Take out an insurance policy before you actually need it and you will get a lower premium. This is ideal if your policy renewal date is coming up and you are considering switching providers.

5. Upfront Payments

On average, paying up front and in full for your insurance saves drivers $62 annually rather than paying monthly.

6. Shop Around When You Relocate

Remember that each state has its own regulations regarding auto insurance so if you are moving, shop around for a new insurance provider. You can pay up to 3 times as much in Michigan (which has the highest insurance rates) as you would in Ohio (which has the lowest rates). This means that you could be in for a decrease or increase in premium. Either way, it is important to be informed.

7. Improve Your Credit Rating

Few people know that their credit score can affect their insurance rate and that they can save around 17% by improving their rating by just one tier. (You can check your credit rating online, for free and updated every 2 weeks at Credit.com.)
Read more: 12 best 1-year old used cars to buy

8. Go Previously Owned

Insurance for new cars is far more expensive and you can save up to 13% for the same make of vehicle that is 5 years older.

9. Provide the VIN

Your VIN number provides information on the specifications of the car such as a factory installed an anti-theft device which could automatically qualify you for a discount.

10. Driving Safely

Driving safely is not only good for your own and other driver’s well being but can prevent an increase in your insurance premium.

11. Compare, Compare, Compare

Every insurance company is different and it is important to find one that suits your requirements and driving skills. Remember that each provider has different policies and procedures for assessing the risk of different drivers.

12. Keep Looking

Do a quick insurance rate comparison every few months to ensure that you are still getting the best deal. Also, keep your eye out for new companies or policies that enter the market and could give you a better deal. Keep in mind the cover and benefits of each policy relative to the rates when making a comparison.

13. Go Electronic

You can apply online, sign documents electronically and avoid all those cumbersome papers which can provide you with a small saving from some insurance providers.

14. Level Of Education

It is important to state your highest level of education on your policy document. Some insurance companies provide discounts for drivers who have a college degree.

15. User-based Insurance

You may want to consider installing a telematics device in your vehicle which sends data to your insurance company regarding your driving behavior. You can save up to 30% on your insurance if you are a safe driver, who lives close to work and does not spend an excessive amount of time on the road.

16. Understanding the Lingo

Understanding some of the terminology that is used in the industry can help you find a policy that suits you best. There simply is no such thing as a car insurance policy that is designed to meet everyone’s needs.

17. Auto-Pay

Instead of receiving a monthly bill and then making payment, rather ensure that your insurance provider is paid automatically at the same time every month. This may save on your insurance over time as well as in bank fees and charges.

18. Going It Alone

If you have been registered as a driver on another person’s car insurance (such as a parent) for a minimum period of 6 months, you may be given a discount for taking out a separate policy in your own name.

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